TOKYO: Japanese investors sold a net ¥355.9 billion (US$2.40 billion) in foreign bonds during the week ending March 8, the highest amount in over a month, due to a Eurozone debt selloff triggered by Germany’s fiscal spending plans. This marked their largest bond sales since February 1. German 10-year bond yields rose to a 16.5-month high amid discussions on increased state borrowing for economic and military stimulus.

Japanese investors have invested ¥2.96 trillion in foreign bonds this year, a decline from ¥5.8 trillion during the same period last year. However, they invested ¥1.26 trillion in foreign stocks, the largest weekly amount since August, taking advantage of a stronger yen and lower stock prices after a global equity selloff.

Foreign investors continued to buy foreign bonds, with net purchases of ¥686.4 billion, and also bought ¥1.1 trillion in short-term instruments. Meanwhile, Japanese stocks saw ¥220.5 billion in foreign outflows, marking six consecutive weeks of withdrawals.